Depending on the state, you're responsible for the total payoff including the entire outstanding balance, arrears and legal costs. 

You haven't described a scenario that would qualify for one of the exceptions, so a "straight no" is the correct response.......Also, you know that FHA loans aren't the only low down payment options out there, right? 

Is the lease NNN or is landlord responsible for roof, HVAC, etc? 

See below the response I got from the state of Oregon..

Our leases have that tenant is responsible for lawn care.

@Dan Bryskin hey Dan thank you for the response that explained a lot of questions. 

We plan on relocating and starting to build a rental portfolio as we learn the area and the quirks of the Eugene market.Thanks very much in advance, I appreciate any and all responses.

Thanks so much for the response.

I suggest you develop a fairly detailed scope of responsibilities for that PM, including how often you expect him to be there and exactly what kind of interactions, inspections, reporting and other activities & responsibilities you expect of him. 

Anything secured against the property will be paid off (it may be a partial pay off depending on negotiations with your lender) but you will still have the responsibility to not only use all of the cash in the next purchase but also to purchase at least as much as you sell.So, if you've had to make a partial payoff to sell the property you'll either have to replace the debt or bring in cash from somewhere else to meet your 1031 requirements.